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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
conservation easements; valuation
Purpose
Requires the Arizona Department of Revenue (ADOR) or a county assessor, when determining the full cash value (FCV) of a conservation easement, to use and apply standard appraisal practices and techniques unless a statutory formula takes precedence.
Background
Property is classified for assessment purposes into nine classes for the common treatment of the property. Class 2 property is categorized into three subclasses with subclass (C) consisting of real property and improvements that are burdened by a conservation easement. Conservation easements must be voluntarily created and may not be required by a political subdivision or governmental entity. A conservation easement is a nonpossessory interest of a holder in real property imposing limitations or affirmative obligations for conservation purposes to preserve the historical, architectural, archaeological or cultural aspects of real property. Conservation purposes means any of the following activities which yield a significant public benefit: 1) preserving land areas for outdoor recreation by, or the education of, the general public; 2) protecting a relatively natural habitat of fish, wildlife or plants or similar ecosystem; and 3) preserving open space, including farmland and forest land, if the preservation is either for the scenic enjoyment of the general public or pursuant to a clearly delineated federal, state or local governmental conservation policy. The assessed valuation of subclass (C) property is 15 percent of its FCV (A.R.S. ยงยง 33-271; 33-272; 42-12002; 42-12010; and 42-15002).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires ADOR or a county assessor, when determining the FCV of a conservation easement, to use and apply standard appraisal practices and techniques unless a statutory formula takes precedence.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2025
MG/KP/slp